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Debt
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Debt Debt
 
The Company's debt consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Senior Notes
$
501,778

 
$
505,322

Revolver and Term Loans, net
1,170,438

 
1,169,165

Mortgage loans, net
527,085

 
528,189

Debt, net
$
2,199,301

 
$
2,202,676



Senior Notes

The Company's senior unsecured notes are referred to as the "Senior Notes." The Company's Senior Notes consisted of the following (in thousands):
 
 
 
 
 
 
 
 
Outstanding Borrowings at
 
 
Number of Assets Encumbered
 
Interest Rate
 
Maturity Date
 
September 30, 2019
 
December 31, 2018
Senior unsecured notes (1) (2) (3)
 
—
 
6.00%
 
June 2025
 
$
501,778

 
$
505,322


(1)
Requires payments of interest only through maturity.
(2)
The senior unsecured notes include $26.8 million and $30.3 million at September 30, 2019 and December 31, 2018, respectively, related to fair value adjustments on the senior unsecured notes.
(3)
The Company has the option to redeem the senior unsecured notes beginning June 1, 2020 at a price of 103.0% of face value.

The Senior Notes are subject to customary financial covenants. As of September 30, 2019 and December 31, 2018, the Company was in compliance with all financial covenants. On November 1, 2019, the Company launched a tender offer expected to expire on December 4, 2019, for the entire principal amount of the Senior Notes at par.  The Senior Notes were trading at approximately 105% of par at that time.


Revolver and Term Loans
 
The Company has the following unsecured credit agreements in place:

•
$600.0 million revolving credit facility with a scheduled maturity date of April 22, 2020 with a one year extension option if certain conditions are satisfied (the "Revolver");
•
$400.0 million term loan with a scheduled maturity date of April 22, 2021 (the "$400 Million Term Loan Maturing 2021");
•
$150.0 million term loan with a scheduled maturity date of January 22, 2022 (the "$150 Million Term Loan Maturing 2022");
•
$400.0 million term loan with a scheduled maturity date of January 25, 2023 (the "$400 Million Term Loan Maturing 2023"); and
•
$225.0 million term loan with a scheduled maturity date of January 25, 2023 (the "$225 Million Term Loan Maturing 2023").

The $400 Million Term Loan Maturing 2021, the $150 Million Term Loan Maturing 2022, the $400 Million Term Loan Maturing 2023, and the $225 Million Term Loan Maturing 2023 are collectively the "Term Loans." The Revolver and Term Loans are subject to customary financial covenants. As of September 30, 2019 and December 31, 2018, the Company was in compliance with all financial covenants.
 
The Company's unsecured credit agreements consisted of the following (in thousands):
 
 
 
 
 
 
Outstanding Borrowings at
 
 
Interest Rate at September 30, 2019 (1)
 
Maturity Date
 
September 30, 2019
 
December 31, 2018
Revolver (2)
 
3.52%
 
April 2020
 
$
—

 
$
—

$400 Million Term Loan Maturing 2021
 
2.97%
 
April 2021
 
400,000

 
400,000

$150 Million Term Loan Maturing 2022
 
3.08%
 
January 2022
 
150,000

 
150,000

$400 Million Term Loan Maturing 2023
 
3.78%
 
January 2023
 
400,000

 
400,000

$225 Million Term Loan Maturing 2023
 
3.78%
 
January 2023
 
225,000

 
225,000

 
 
 
 
 
 
1,175,000

 
1,175,000

Deferred financing costs, net (3)
 
 
 
 
 
(4,562
)
 
(5,835
)
Total Revolver and Term Loans, net
 
 
 
 
 
$
1,170,438

 
$
1,169,165

 
(1)
Interest rate at September 30, 2019 gives effect to interest rate hedges.
(2)
At both September 30, 2019 and December 31, 2018, there was $600.0 million of borrowing capacity on the Revolver. The Company has the ability to further increase the borrowing capacity to $750.0 million, subject to certain lender requirements. The Company also has the ability to extend the maturity date for an additional one year period ending April 2021.
(3)
Excludes $0.6 million and $1.5 million as of September 30, 2019 and December 31, 2018, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.

Mortgage Loans
 
The Company's mortgage loans consisted of the following (in thousands):
 
 
 
 
 
 
 
 
Outstanding Borrowings at
 
 
Number of Assets Encumbered
 
Interest Rate at September 30, 2019 (1)
 
Maturity Date
 
September 30, 2019
 
December 31, 2018
Mortgage loan (2)
 
7
 
3.33%
 
April 2022
(7)
200,000

 
—

Mortgage loan (3)
 
1
 
5.25%
 
June 2022
 
31,427

 
32,066

Mortgage loan (4)
 
3
 
4.95%
 
October 2022
 
89,909

 
91,737

Mortgage loan (5)
 
1
 
4.94%
 
October 2022
 
28,981

 
29,569

Mortgage loan (2)
 
4
 
3.38%
 
April 2024
(6)
85,000

 
85,000

Mortgage loan (2)
 
3
 
2.88%
 
April 2024
(8)
96,000

 
—

Mortgage loan
 
—
 
—
 
—
(9)
—

 
140,250

Mortgage loan
 
—
 
—
 
—
(10)
—

 
150,000

 
 
19
 
 
 
 
 
531,317

 
528,622

Deferred financing costs, net
 
 
 
 
 
 
 
(4,232
)
 
(433
)
Total mortgage loans, net
 
 
 
 
 
 
 
$
527,085

 
$
528,189


(1)
Interest rate at September 30, 2019 gives effect to interest rate hedges.
(2)
The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity.
(3)
Includes $0.5 million and $0.6 million at September 30, 2019 and December 31, 2018, respectively, related to a fair value adjustment on a mortgage loan.
(4)
Includes $1.5 million and $1.9 million at September 30, 2019 and December 31, 2018, respectively, related to fair value adjustments on the mortgage loans.
(5)
Includes $0.5 million and $0.6 million at September 30, 2019 and December 31, 2018, respectively, related to a fair value adjustment on the mortgage loan.
(6)
In April 2019, the Company refinanced the $85.0 million mortgage loan for an amended interest rate of LIBOR + 1.60% and an amended maturity date of April 2026, inclusive of all extension options. The Company also replaced the five hotels that were encumbered by the mortgage loan with four other hotels.
(7)
In April 2019, the Company entered into a new mortgage loan that bears interest at LIBOR + 1.52% and provides two one year extension options.
(8)
In April 2019, the Company entered into a new mortgage loan that bears interest at LIBOR + 1.60% and provides two one year extension options.
(9)
In March 2019, the Company paid off the mortgage loan in full.
(10)
In April 2019, the Company paid off the mortgage loan in full.
 
Certain mortgage agreements are subject to customary financial covenants. The Company was in compliance with all financial covenants at September 30, 2019 and December 31, 2018.

Interest Expense

The components of the Company's interest expense consisted of the following (in thousands):
 
For the three months ended September 30,
 
For the nine months ended September 30,
 
2019
 
2018
 
2019
 
2018
Senior Notes
$
5,954

 
$
5,954

 
$
17,842

 
$
22,485

Revolver and Term Loans
10,805

 
11,042

 
31,795

 
33,428

Mortgage loans
5,001

 
6,753

 
15,575

 
20,171

Amortization of deferred financing costs
1,116

 
880

 
3,018

 
2,688

Undesignated interest rate swaps

457

 
—

 
402

 
—

Total interest expense
$
23,333

 
$
24,629


$
68,632

 
$
78,772